What Should Foreigners Do If They Are Defrauded of Property in Vietnam?

Vietnam has become an increasingly familiar destination for foreigners to live, work, invest, and do business. Alongside new opportunities, there have also been numerous cases where foreigners are defrauded of property in Vietnam through civil transactions, business contracts, or investment activities.

A major concern is that when incidents occur, many people fall into panic:
Will Vietnamese law protect me? Where should I report it? Is there any chance of recovering lost assets?
So, in cases of fraud and property misappropriation in Vietnam, what should foreigners understand and do correctly? Let DEDICA explain below.

How Does Vietnamese Law Protect Foreigners?

When defrauded in Vietnam, many foreigners worry that their rights may not be fully protected due to differences in nationality, language, and legal systems. However, legally speaking, Vietnamese law clearly recognizes the principle of protecting the lawful rights and interests of foreigners when they participate in legitimate civil, business, and commercial relations in Vietnam.

Accordingly, foreigners have the right to report fraudulent conduct and request competent authorities to verify and handle the matter, similar to Vietnamese citizens. This protection does not depend on nationality but on the legal nature of the transaction and the violation.

However, in practice, not every case of financial loss is treated as a criminal matter. The ability to obtain protection and recover assets depends greatly on whether the victim correctly identifies the nature of the case and takes appropriate legal steps from the outset. This is a critical factor many foreigners underestimate when an incident first occurs.

When Is an Act Considered Fraudulent Misappropriation?

Under Vietnamese law, fraud is not simply when one party fails to perform a contract. The key factor is whether there was deceptive conduct and intent to appropriate property from the very beginning of the transaction.

Authorities will consider whether the accused party:

• Provided false information or concealed important facts;

• Falsified legal status, projects, documents, or capability;

• Intentionally built trust to induce the victim to voluntarily transfer money or assets.

If deception existed from the outset, the case may be treated as fraud. Conversely, if the transaction was lawful and disputes only arose during performance, the case is usually treated as a civil or commercial dispute, even if the losses are substantial.

In cases involving foreign elements, confusion between fraud and civil disputes is a common reason victims choose the wrong legal path, reducing the chances of effective protection. Proper legal characterization from the beginning is therefore decisive.

What Should Foreigners Do If They Are Defrauded?

In cases involving foreign elements, the effectiveness of handling largely depends on the first steps taken.

Step 1: Correctly identify the legal nature of the case
Foreigners should not rush to file criminal accusations but must determine whether the situation constitutes fraud or a civil dispute.

Step 2: Collect and preserve all evidence
Contracts, transfer receipts, emails, messages, and communications are critically important. Editing, deleting data, or continuing transactions without legal advice may cause serious disadvantages.

Step 3: Report suspected criminal conduct
Foreigners have the right to submit criminal complaints to competent authorities. However, many complaints are delayed or not accepted due to unclear presentation or lack of legal grounds.

Step 4: Closely monitor the process
Proactively tracking progress, supplementing documents, and cooperating with authorities are essential to prevent asset dissipation.

Step 5: Authorize a lawyer
For those not residing regularly in Vietnam, appointing a lawyer is a practical and safe solution to ensure proper legal direction from the beginning.

Step 6: Learn and prevent future risks
Verifying counterpart legal status, reviewing contracts, and consulting lawyers before transactions are the most effective preventive measures.

Legal Barriers Foreigners Commonly Face

Although Vietnamese law protects foreigners, handling fraud independently in Vietnam involves many challenges.

Language and procedural barriers are the most common. Mischaracterizing the case or lacking legal basis may lead to delays or rejection of complaints.

Many foreigners also do not reside regularly in Vietnam, while legal proceedings require close monitoring and timely responses. Delays can significantly reduce effectiveness.

Another major risk is rapid asset dissipation. Without timely legal measures, recovery chances become limited.

Finally, confusion between civil disputes and criminal fraud often leads victims to choose the wrong approach. In practice, early involvement of lawyers helps ensure correct legal direction and more effective protection.

When foreigners are defrauded in Vietnam, the decisive factor lies not only in legal provisions but in correctly understanding the case and acting promptly. Choosing the right strategy and working with experienced lawyers significantly increases the likelihood of protecting lawful rights.

Facing a Similar Issue?

Contact DEDICA Law Firm for tailored legal strategy and support.
DEDICA LAW FIRM

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